Regulatory Alerts2015-03-24
Added · Updated
Solvency II: Q&A Application of the matching adjustment
Insurers may apply for permission to use the matching adjustment under Article 77b of the Solvency II Directive starting 1 April 2015, subject to DNB assessment of statutory criteria. The regulator clarifies that group pension contracts must be evaluated at the employer level rather than member level, and direct Dutch mortgage loans are ineligible due to repayment options. Compliance with cash flow mismatch requirements necessitates submitting detailed projections, risk assessments, and mitigation plans, while surrender value demonstrations require specific evidence of lapse risk management.